Site Sources

Some readers may prefer to begin with the more user-friendly Introduction to Deposit Deflation.

This site builds its depiction of the U.S. money system on primary sources — our money system’s own documentation. For the convenience of those who are following up on comments made elsewhere, Deposit Deflation goes “deep in the weeds” immediately and links to its primary sources right on the home page.

Some of these sources appear to contradict the claims of well-known money theorists, and these discrepancies are addressed in linked discussion pages.

United States Central Summary General Ledger (2018)

  • This shows that Cash is an asset to the U.S. Government. Even mutilated paper currency is shown to be an asset. Treasury Securities are liabilities  of the U.S. Government; outstanding U.S. currency is not.
  • Consider: if the U.S. Government could simply print Federal Reserve Notes in large denominations, and spend them directly or deposit them into the accounts of payees, it would not be increasing its indebtedness. But it can do no such thing, for reasons to be shown below.
  • Some money theorists describe paper currency and coins as U.S. Government liabilities, or even U.S. Government debt. The balance sheet shows otherwise.
  • Link:
  • Our discussion: Does Paying Taxes Destroy Money?

Financial Statements of the Board of Governors of the Federal Reserve System – 2017

Federal Reserve Bank of Minneapolis – Statement of Conditions 2017

“Who Owns the Federal Reserve Banks?” – Federal Reserve Bank of St. Louis

12 U.S. Code § 502 – Liability of shareholders of Federal reserve banks on contracts, etc.

Income, Expenses, and Dividends: Interest Paid on Federal Reserve Notes – The Fed – Micro Data Reference Manual

“Treasury Services” on the Federal Reserve Banks’ site

Uniform Commercial Code § 4-201 – Status of Collecting Bank as Agent

Treasury Financial Manual – Part 5 Chapter 2000

  • This shows that a U.S. Government agency that receives U.S. currency in the course of business is obliged to deliver such currency to a “commercial bank authorized to accept TGA (Treasury General Account) deposits.”
  • Link:
  • Our discussion: Does Paying Taxes Destroy Money?

The National Loans of the United States from July 4, 1776 to June 30, 1880 – US Government Printing Office –

Treasury Department Circular to the Collectors of the Customs – 22 February [5–March] 1793